Best Car Insurance for 20-Year-Old Drivers (November 2024)
USAA, State Farm, and Auto-Owners are some of the best insurance companies for young adult drivers.
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Written byJess Ullrich
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10+ years writing insurance and personal finance topics
Former associate finance editor for Investopedia
Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.
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Edited bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated November 21, 2024
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Table of contents
Insurance companies often consider younger drivers to be a high risk on the road due to fewer years of driving experience. And, unfortunately, statistics support this: Drivers aged 20–24 have one of the highest fatal crash rates of any age group, according to Insurance Institute for Highway Safety (IIHS) data.[1]
Because of this, insurers often charge drivers in their early 20s some of the highest car insurance rates. But taking certain steps — starting with comparing car insurance quotes — can help you find an affordable car insurance policy, no matter your age.
Quick Facts
Staying on your parents’ auto policy might be cheaper than getting your own.
You’ll likely need your own car insurance policy if you no longer live at home.
Young driver discounts are one of the best ways for 20-year-old drivers to find affordable coverage.
Best car insurance for 20-year-old drivers
If you’re searching for the best car insurance for a 20-year-old driver, here are some of the best insurance companies offering the coverage you need.
State Farm: Best for discounts
| User Reviews | 4.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $54/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $119/mo |
4.2
Best choiceBased on 9037 verified guest reviews and ratings
How drivers feel about State Farm
Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (4,970)
Charles
November 19, 2024
Verified Review
New Car Price
State Farm is preferred due to its loyalty and pricing. Despite my vehicle being 20 years old, the policy is priced as if it were 2 years old.
Ronald
November 19, 2024
Verified Review
State Farm Experience: 35 Years+
They are forcing me to replace my house roof or they will cancel my policy.
David
November 19, 2024
Verified Review
Too expensive
It's too expensive. They raise rates every six months, even though I've never filed a claim.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.78A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
State Farm offers several discounts specifically designed for young drivers and is available nationwide. While it doesn’t offer the lowest rates of all insurers, these discounts could make your coverage much more affordable. Young drivers can take advantage of a good student, driver education, and college-student away-at-school discount (if you remain on your parents’ insurance).
State Farm also offers a safety-focused Steer Clear program for drivers younger than 25, and completing the program could result in lower insurance rates.
Pros
Several available discounts for young drivers
Low number of NAIC complaints
Well-rated by J.D. Power for customer satisfaction
Cons
AM Best financial strength rating declined in 2024
Slightly higher premiums than some competitors
Not as many available discounts as some insurers
Auto-Owners: Best for affordable coverage
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.5 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $34/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $73/mo |
4.0
Best choiceBased on 141 verified guest reviews and ratings
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (89)
Debra
November 3, 2024
Verified Review
Excellent
They keep raising prices.
Scotty
November 2, 2024
Verified Review
They are a bunch of crooks. My policy has increased every single time, and I've only had one small claim.
They are a bunch of crooks. My policy has increased every single time, and I've only had one small claim.
Dana
October 31, 2024
Verified Review
Average
Ask many questions to cover all aspects of the policy.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
837NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
Auto-Owners offers low rates and several discounts that could lower your insurance premiums even further, such as a good student discount, student away-at-school discount, and safety-feature discount. J.D. Power also rates the insurer highly for customer and claims satisfaction.
Pros
Multiple available discounts
High J.D. Power claims satisfaction rating
AM Best financial strength rating of A++ (Superior)
Cons
Available in only 26 U.S. states
Quotes not available online
Negative customer reviews on Trustpilot
USAA: Best for drivers on their parents’ policy
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.4 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $45/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $99/mo |
4.9
Best choiceBased on 1602 verified guest reviews and ratings
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (914)
Gloria
November 15, 2024
Verified Review
Not Good for Claims
I have storm damage and the claim process is not satisfactory.
Martin
November 11, 2024
Verified Review
Price Shopping
I have been with USAA for over 60 years. Obviously, I've been very happy. Since I don't drive very far, I have been seeing advertisements for lower prices. However, I have no plans of leaving USAA.
Rena Sabine
November 8, 2024
Verified Review
Disappointing and inflexible service
My experience with this company has been disappointing, especially this second time around. I would suggest considering other options. From my recent interactions, they have been dismissive and argumentative. I have already started finalizing my next premium with another company. I'm perplexed as to how they receive praise when they treat clients in this manner.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
If you plan to stay on your parents’ auto insurance policy, USAA is worth a look. Policyholders can take advantage of several discounts, including good student and multi-vehicle discounts.
You can also save money on a family policy by participating in the company’s telematics program and maintaining safe driving habits. Just keep in mind that USAA only offers coverage to military members, veterans, and their qualifying family members.
Pros
Above-average J.D. Power customer satisfaction ratings
AM Best financial strength rating of A++ (Superior)
Good student discount available
Cons
Only available to active-duty military, veterans, and qualifying family members
Slightly higher rates than some competitors
Higher-than-average number of customer complaints with the National Association of Insurance Commissioners (NAIC)
To choose the best car insurance companies for 20-year-old drivers, we compared insurers’ rates, relevant discounts, nationwide availability, and our Insurify Quality (IQ) Scores, which measure overall company health and customer satisfaction. The companies we selected offer relatively low rates compared to competitors and provide relevant discounts, such as good grades, new driver, or driver’s education course discounts.
Getting your own policy vs. staying on your parents’ car insurance
Generally, it’s cheaper to stay on your parents’ car insurance as a 20-year-old rather than having your own policy. While this can be beneficial for you, your parents’ insurance rates will probably increase if they name you on their policy. Keep in mind that most insurers require you to still live at home or be away at school to stay on the family policy.
When you stay on your parents’ policy, the vehicle you drive can also affect your rates. You may be able to save by being the primary driver on a vehicle that’s cheaper to insure. But if you don’t have your own car, insurers typically base your rate on the family vehicle with the highest coverage level.
If you don’t live with your parents, staying on their policy won’t be an option. For instance, if you have your own apartment, you’ll likely need to get your own policy — and it could be pricey. Shopping around can help you find the best rate.
Drivers ▲▼ | Monthly Liability-Only Cost ▲▼ | Monthly Full-Coverage Cost ▲▼ |
|---|---|---|
| Two parents + a young driver | $296 | $599 |
| Two parents | $157 | $316 |
| Young driver on their own policy | $184 | $372 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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Cheapest car insurance for 20-year-old drivers
Comparing quotes from different car insurance companies can help if you’re looking for the cheapest auto insurance for a 20-year-old driver. Also look for relevant discounts, as many insurers offer good student, new driver, and other discounts that might apply to your situation.
Opting for less coverage instead of more could also help you save, but you’ll have less financial protection. Here’s how rates for liability-only and full-coverage car insurance compare.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Data reviewed by Konstantin Halachev
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Insurance Company ▲▼ | Average Quote: Liability Only ▲▼ | Average Quote: Full Coverage ▲▼ |
|---|---|---|
| COUNTRY Financial | $20 | $48 |
| Auto-Owners | $44 | $95 |
| NJM | $45 | $83 |
| USAA | $55 | $121 |
| Erie | $61 | $114 |
| GEICO | $65 | $143 |
| State Farm | $68 | $150 |
| Root | $69 | $119 |
| Mile Auto | $72 | $122 |
| Allstate | $73 | $160 |
| American Family | $74 | $162 |
| Metromile | $77 | $138 |
| Safeco | $92 | $160 |
| CSAA | $94 | $143 |
| Nationwide | $99 | $218 |
| Dairyland | $101 | $263 |
| Mercury | $102 | $201 |
| Travelers | $105 | $226 |
| National General | $109 | $216 |
| Progressive | $109 | $169 |
| Clearcover | $114 | $204 |
| State Auto | $114 | $243 |
| Direct Auto | $122 | $234 |
| Farmers | $127 | $278 |
| Commonwealth Casualty | $131 | $349 |
| Chubb | $135 | $285 |
| The General | $136 | $280 |
| Bristol West | $138 | $298 |
| 21st Century | $138 | $293 |
| Elephant | $139 | $223 |
| Shelter | $139 | $263 |
| GAINSCO | $141 | $315 |
| The Hartford | $144 | $259 |
| Foremost | $150 | $341 |
| Liberty Mutual | $173 | $280 |
| AssuranceAmerica | $199 | $331 |
| Amica | $208 | $385 |
| Infinity | $224 | $315 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Why is car insurance so expensive for 20-year-old drivers?
Car insurance is expensive for 20-year-old drivers because, statistically, drivers in this age group have more car accidents. Males ages 20–24 had the third-highest crash deaths of any age group, while females in the same age range had the second-highest, per IIHS data.
In 2021, 2,116 young drivers were killed and an estimated 203,256 people were injured in motor vehicle accidents, according to National Highway Traffic Safety Administration (NHTSA) data.[2]
Unfortunately, if an insurance company deems you a high risk due to your age, your insurance rates will also be higher.
Common mistakes young drivers make when buying car insurance
If you’re worried about high car insurance costs, avoiding these pitfalls can help you find relatively cheap car insurance that meets your needs:
Only getting one quote: Avoid opting for the first car insurance policy you find. Instead, compare quotes from different insurers, as rates vary — sometimes widely — across companies. Create a simple spreadsheet to keep track of insurers and potential costs, then use that information to narrow your options.
Opting for minimal coverage: While it can be tempting to opt for minimal insurance coverage to save money, this could be a mistake. If you’re involved in a car accident, it could be financially devastating if you have insufficient car insurance.
Not taking advantage of discounts: Many auto insurance companies offer a lot of car insurance discounts to attract and retain customers. As you get quotes from different insurers, ask about the discounts they offer and whether those discounts align with your situation.
How much car insurance 20-year-old drivers need
Every U.S. state except New Hampshire requires car insurance, and you’ll need to meet certain coverage minimums. You can typically find coverage requirements on your state’s department of transportation website.
But getting only enough coverage to satisfy state laws may not be the best strategy. For example, many states only require liability insurance. This type of coverage pays for damage to another person’s vehicle or property, as well as any medical bills, if you’re found at fault in a car accident. It doesn’t pay for repairs to your car or cover your medical expenses.
Choosing a full-coverage policy could be a better solution. Full-coverage insurance typically includes comprehensive, collision, and liability coverage. And it may also include medical payments (MedPay) or personal injury protection (PIP) coverage. This type of policy gives you more protection, which will come in handy if you’re ever in an accident.[3]
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4 ways young drivers can save on car insurance
If your rate is too high as a 20-year-old driver, here are four things you can do to save on car insurance:[4]
Shop around
Shopping around for car insurance should be your first step if you want to save money. Get auto insurance quotes from at least three different companies to compare rates.
Get discounts
Ask each car insurance company about its discounts. Just as rates vary across companies, discounts do, too.
Take a driver safety course
Many insurers offer discounts for taking a driver safety or defensive driving course. Look for course options in your area, as completing one of these courses could result in additional savings.
Stay on your parents’ insurance
If possible, consider staying on your parents’ car insurance instead of getting a policy on your own. Doing so could help you save on coverage.
Car insurance for 20-year-old FAQs
If you’re still wondering about car insurance for 20-year-olds, here are some common questions and answers.
How much is car insurance for a 20-year-old per month?
The national average cost for a 20-year-old driver is $299 per month for full-coverage insurance and $146 per month for liability-only insurance, Insurify data shows. But your monthly cost can vary considerably depending on your coverage needs, whether you stay on your parents’ policy or opt for your own, your driving history, and other factors.
What is the cheapest car insurance for a 20-year-old?
Across the U.S., COUNTRY Financial, NJM, and Auto-Owners are the cheapest car insurance companies across all age groups.
But the cost of your car insurance will vary depending on your ZIP code, age and gender, driving record, and other factors.
When will my car insurance rates go down?
Car insurance rates begin to decrease gradually once you reach age 25. Middle-aged drivers pay lower rates for auto insurance than teenage drivers or drivers in their early 20s, as insurance companies consider older drivers to be a lower risk.
Can a 20-year-old get their own policy?
Yes. You can get your own car insurance policy if you’re 20 years old, whether you live with your parents or not. Consider the cost of car insurance when staying on your parents’ policy versus obtaining your own.
How much is insurance for a 20-year-old in Florida?
On average, Florida drivers in their 20s pay an average car insurance rate of $273 per month for liability coverage. For comparison, Florida drivers in their teens pay $260 per month for liability coverage, while drivers in their 40s pay around $155 monthly.
What is the best car insurance for new drivers younger than 21?
The best car insurance for new drivers younger than 21 depends on your situation. But insurers like Auto-Owners, Erie, and State Farm offer low average insurance rates. These insurance also have several discounts that could help lower the cost of your insurance coverage.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- Insurance Institute for Highway Safety. "Fatality Facts 2022."
- National Highway Traffic Safety Administration. "Young Drivers."
- Insurance Information Institute. "Auto Insurance Basics."
- Insurance Information Institute. "How to save money on car insurance."
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Jess UllrichInsurance Writer
Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.
Edited bySarah Archambault
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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